Latvia’s central bank governor Mārtiņš Kazāks has urged European policymakers not to underestimate the threat from Russia, arguing that the EU is already “at war” with the country and must ensure its financial system is prepared for further escalation.
“It’s naive to think that we are not at war [with Russia],” Kazāks told the FT, pointing to persistent cyber attacks, sabotage of infrastructure in the Baltic Sea and drone incursions into Danish airspace. Although the conflict is not being physically fought on EU territory, he said, “we need to be resilient to deal with that”.